Multibagger infra stock in a downtrend, near 52-week low; what's next? 

Shares of HG Infra Engineering have turned negative in period up to 2 years. The multibagger stock with gains of 417% in five years is down 33.47% in a year and fallen 18% in six months. In two years, the stock has lost 0.53%. 

In fact, the stock stands near its 52-week low reached last week. The infra stock hit a 52 week low of Rs 909 on October 20 this year. On the other hand, Antique Stock Broking has termed HG Infra among its top picks. It has a price target of Rs 1,461 on the infra stock. The brokerage expects a 15% EBITDA margin in FY26 against 15% in FY25. 

Vinod Nair of Geojit is bullish on the infra stock. 

"The increasing opportunities in road, railway and solar projects, along with a current order backlog at around 3x TTM revenue, ensure strong business visibility for HG Infra.  The management is prioritising the diversification of the order book and maintaining a healthy margin profile to drive future growth," said Nair. 

According to consensus estimates of brokerages, the stock is liley to see an upside of 60% from the current level.

HG Infra has an estimated 60% return potential, backed by a strong order backlog of about Rs 14,700 crore, which is nearly 2.2 times its fiscal 2025 revenue. 

Additionally, the company has provided an optimistic revenue guidance for this financial year, signalling steady execution momentum. Monetisation proceeds from select assets are also expected to deleverage the balance sheet. 

The stock has gained 417% in five years. 

Axis Securities has a price target of Rs 1,480 on the stock. 

"We maintain our BUY rating on HGIEL and value its EPC business at 10x FY27E EPS and HAM/Solar/Battery portfolio at 1.2x/1x/1x book value to arrive at a target price of Rs 1,480/share, which implies an upside of 54% from the CMP," said Axis. 

However, the brokerage cited lower order inflow, slow execution of projects and an increase in input costs as key risks to its estimates and target price. 

In the previous session, the infra stock closed 2.61% higher at Rs 934.40 against the previous close of Rs 910.65 on BSE. Market cap of the firm rose to Rs 6089.59 crore. 

The stock has a beta of 1.4, indicating high volatility in a year. It is trading in neither in the overbought nor in the oversold territory with a RSI of 45.1. HG Infra shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

HG Infra Engg. is engaged in the business of engineering, procurement and construction (EPC), maintenance of roads, bridges, flyovers and other infrastructure contract works.